Bitaigen Research MANTRA (OM) token price plunged 90% on April 13, mainly due to large‑scale forced liquidations on centralized exchanges and sell‑off concerns triggered by the team’s massive token holdings. The outlook remains uncertain.
In this article we outline the key factors that caused the sudden, severe decline of the MANTRA (OM) token, dissect exchange‑forced liquidations, team holdings and other risk points, and assess possible future trajectories. If you are tracking the project’s outlook, please continue reading for a complete perspective.
MANTRA (OM) Token Plummets 90%
According to CoinMarketCap data, the native token OM of the MANTRA ecosystem fell roughly 90% within a four‑hour window, wiping out billions of dollars in market capitalisation and sparking widespread panic across trading platforms and Telegram groups.
- On April 13, local time, the price of OM dropped from above $6 to $0.37, erasing almost all gains accumulated since January 2024.
- Earlier this year the token had peaked at $9.
At the time of writing, OM’s trading price has recovered to above $0.80, yet it remains roughly 90% below its all‑time high.
Reasons Behind the OM Collapse
The MANTRA team attributes the crash to massive forced liquidations on centralized exchanges. Specific contributing factors include:
- Chain‑reaction Sell Orders
- Co‑founder John Patrick Mullin posted on X (formerly Twitter) that a large OM investor triggered a cascade of sell orders, breaking the order book and accelerating the price decline.
- Large Deposit to OKX
- Multiple reports indicate that a wallet linked to the MANTRA team deposited 3.9 million OM into the centralized exchange OKX, fueling market fears of a coordinated sell‑off.
- Supply Control and Potential Insider Activity
- Allegedly, the MANTRA team controls nearly 90 % of the token’s total supply, raising alarms about insider trading and price manipulation.
- The community has long questioned transparency, previously accusing the team of using market makers to manipulate price, altering tokenomics, and repeatedly postponing community airdrops.
- OTC Deal Suspicion
- Reports suggest MANTRA may have engaged in undisclosed over‑the‑counter (OTC) transactions, selling tokens at up to 50 % discount to the market price. This allegedly left some investors with losses when the price crashed, further fueling panic selling.
- Forced Liquidation Cascade
- The rapid price drop triggered stop‑loss orders and leveraged positions, resulting in forced liquidations that created a vicious feedback loop and deepened the crash.
The MANTRA team denies all allegations of coordinated selling. Co‑founder John Patrick Mullin affirmed in a public statement that the team is conducting an in‑depth investigation and seeking solutions.
What’s Next for OM? Can It Survive the Crisis?
After the incident, the public MANTRA Telegram group was taken offline. Community lead Dustin McDaniel attempted to calm concerns before the shutdown, stating that “the exact cause remains unclear until the internal review is completed.”
- Comparison with Historical Black Swans: The magnitude of OM’s plunge is comparable to the implosion of Terra LUNA, the exposure of the FTX fraud, and similar market‑shaking events.
- Tokenomics Concerns: A fully diluted valuation approaches $9.5 billion, while total value locked (TVL) sits at roughly $13 million, highlighting a stark imbalance.
- On‑Chain Fund Flows: In the days leading up to the crash, millions of OM were moved to centralized venues such as OKX and Binance. One Binance‑associated address transferred OM worth over $36 million to OKX, viewed as a strategic positioning before the collapse.
In addition, MANTRA DAO is currently facing legal challenges. A Hong Kong court has ordered six members of the organization to disclose financial records in an ongoing lawsuit accusing them of misappropriating DAO funds, further eroding external confidence in its governance structure.
Just two months prior, MANTRA was enjoying a high‑profile phase: the project obtained a virtual‑asset licence from Dubai’s VARA and announced a $1 billion tokenisation deal with real‑estate giant DAMAC. Today, with investor confidence shattered and key infrastructure offline, OM’s future is highly uncertain.
- Potential Path Forward: If the team can restore transparency, resolve internal governance disputes, and stabilise liquidity, OM could regain a foothold in the market.
- Worst‑Case Scenario: Failure to recover may consign OM to become one of the steepest declines in crypto history since the 2022 Terra LUNA collapse.
---
*Please note that cryptocurrency gains may be taxable in your local jurisdiction; consult a qualified tax professional for guidance. For U.S. residents, trading on Binance.US is required rather than the global Binance platform. Use USD, SEPA, or SWIFT for fiat transactions where applicable.*
The above analysis details the causes behind the MANTRA (OM) token’s price crash and offers a perspective on its possible future. For additional insight, please refer to other articles on Bitaigen (比特根).
Related Reading
- Hedera Hashgraph (HBAR) Price Forecast 2025-2030: Technical Analysis & Market Ou
- Zora Token Surge: 40% One-Day Gain After Robinhood Launch
- Ripple XRP 2025 Forecast: AI Predictions After $3.65 Surge
💡 Register on Binance with referral code B2345 for the maximum trading fee discount. See Binance complete guide.
⚠️ Risk Disclaimer: Crypto prices are highly volatile. This is not investment advice.
